JOHANNESBURG (miningweekly.com) – Perth-based explorer Firestone Energy on Friday reported that it had received firm commitments to raise A$2,68-million through funding loans from investors.

Interest of about 9% a year was payable on the loans.

The funds were intended to be used for progressing the Waterberg coal joint venture, with coal-miner Sekoko Coal, and for the short-term working capital requirements of the company.

The lenders have agreed, subject to Firestone obtaining shareholder approval, to apply the proceeds of repayment of the loans to subscribe for fully paid ordinary shares in Firestone at a price of $0,04 a share.     

Firestone stated that the maximum number of new shares proposed to be issued is 67-million new shares. The new shares would, if issued, rank equally with existing ordinary shares in Firestone from their date of issue.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.